From March through May, around 1 crore migrant workers fled India’s megacities, afraid to be unemployed, hungry and far from family during the world’s biggest anti-Covid-19 lockdown.
Now, as Asia’s third-largest economy slowly reopens, the effects of that massive relocation are rippling across the country. Urban industries don’t have enough workers to get back to capacity, and rural states worry that without the flow of remittances from the city, already poor families will be even worse off -- and a bigger strain on state coffers.
Meanwhile, migrant workers aren’t expected to return to the cities as long as the virus is spreading and work is uncertain. States are rolling out stimulus programs, but India’s economy is hurtling for its first contraction in more than 40 years, and without enough jobs, a volatile political climate gets more so.
“This will be a huge economic shock, especially for households of short-term, cyclical migrants, who tend to come from vulnerable, poor and low-caste and tribal backgrounds,” said Varun Aggarwal, a founder of India Migration Now, a research and advocacy group based in Mumbai.
In the first 15 days of India’s lockdown, domestic remittances dropped by 90%, according to Rishi Gupta, chief executive officer of Mumbai-based Fino Paytech Ltd., which operates the country’s biggest payments bank.
By the end of May, remittances were back to around 1750 rupees ($23), about half the pre-Covid average. Gupta’s not sure how soon it’ll fully recover. “Migrants are in no hurry to come back,” Gupta said. “They’re saying that they’re not thinking of going back at all.”
If workers stay in their home states long term, policymakers will have more than remittances to worry about. If consumption falls and the new surplus of labor drives wages down, Agarwal said, “there will also be a second-order shock to the local economy. Overall, not looking good.”
India announced a $277 billion stimulus package in May and followed it up with a $7 billion program aimed at creating jobs for 125 days for migrants in villages across 116 districts. Separately, local authorities are also looking for solutions.
Officials in Bihar have identified 2,500 acres of land that could be made available to investors, said Sushil Modi, deputy chief minister of Bihar, a state in east India. “We can use this crisis as an opportunity to speed up reforms,” he said.
The investors haven’t materialised yet, and in the meanwhile, state governments are relying on the national cash-for-work program that guarantees 100 days worth of wages per household.
Skilled workers don’t want to do manual labor offered through the program, and even if they did, says Amitabh Kundu of RIS, many think of it as beneath their station. “There will be an increase in social tensions,” he predicts. “Caste may again start playing a role. It’s absolute chaos.”
For skilled workers, initiatives vary:
* Uttar Pradesh, which received 3.2 million people, is compiling lists of skilled workers who need employment and trying to place them with local manufacturing and real estate industry associations. So far, the government says, it’s placed 300,000 people with construction and real estate firms.
* Bihar has placed returners in state-run infrastructure projects and hired others to stitch uniforms and make furniture for government-run schools, even as they waited in quarantine centres, said Pratyay Amrit, head of the state’s disaster management department.
* The eastern state of Odisha announced an urban wage employment program aimed at putting as many as 450,000 day labourers to work through September. Some 25,000 people have been employed, so far, under the scheme, G. Mathivathanan, principal secretary for housing and urban development said.
Attracting Investments
It’s not clear any of this will be enough to make a dent, says Ravi Srivastava, professor at New Delhi-based Institute of Human Development, adding that the states don’t have much of a track record on economic development.
“It was the failure of these states to improve governance and put development plans in place that led to the out-migration in the first place,” he said.
But officials and workers’ rights advocates see opportunity. Uttar Pradesh has established liaisons to encourage companies from the US, Japan and South Korea to establish manufacturing in the state. There and in Madhya Pradesh and Rajasthan, the government has made labour laws more friendly to employers, making it easier to hire and fire workers.
Modi, the minister from Bihar, said the migration may also give workers--historically a disenfranchised group--new power, particularly as urban centres struggle. “The way industries treated workers during the lockdown -- didn’t pay them, the living conditions were poor -- now these industries will realize the value of this force,” Modi said.
“In the days to come, labour will emerge as a force that can’t be ignored anymore,” he added. “That’s the new normal. We will work out how to ensure dignity, rights to our people who are going to work in other states.”
Bihar is due for elections by November, a vote that could be an early test of the mass migration’s political consequences. The state is currently governed by a coalition that includes Prime Minister Narendra Modi’s Bharatiya Janata Party. Amitabh Kundu, a fellow at the Research and Information System for Developing Countries, a New Delhi-based government think-tank, said migrant workers are likely to be angry voters.
“Chief ministers are telling these migrants that they will not have to go back for work,” he said. “But their capacity to do something miraculous in the next four to five months is doubtful. If they can retain even one-fourth of the migrants, I would call it a success.”
Comments
Muslims worship allah and don't want to say vandemataram.
Christians worship Jesus only still they do not have problem in singing vandemataram.
Bhudhist worship bhudha only still they do not have problem in singing vandemataram.
Jains worship mahavir only still they do not have problem in singing vandemataram.
why it is only problem for muslim to sing vandemataram.-
Please everyone try to know, that Islam has codes to follow. Islam strongly and strictly has to follow the God’s rule. No human interference is allowed to complement to God’s rules. Islam has 2books. Quran and Hadees the sayings of the prophet Muhammad (peace upon him PBU)
Muslims are not allowed to introduce new things which are contradictory to Islam.
Because Islam is flexible enough to allow allowable things. These things will suffice the needs. No need to invent the wheels. Islam is purely based on 1God and Message came thru prophet Muhammad PBU.
This is called 1ness of God. Nothing should be worshipped other than 1 the true God. We worship only the God and we seek all our requirements with this 1God. This is the important message. Anyone contradicting and violating it by worshiping others or praying others for our requirements is a unforgivable offense which leads to hell fire. it is command to us to be careful of this error.
30% of the teaching of Islam is repeatedly discouraging to worship or attribute others with the God. What a serious teaching we have to be careful of. This is repeated in Quran and hadees. Nothing is allowed even in a minute level to equate into the Quality of the God. This is oneness of God. Things against is called as doing shirk(associating to the God). May the God save us from this error.
1.VANDE MATARAM : We can not sing this song because its meaning contradicts the above oneness of the God.
2. Celebrating other festival
Muslims are allowed to observe 2eids (Eid ul Fitr. This is after end of Ramadan fasting, 2nd is Eid us Adha)
Even we don’t celebrate the birth day of anyone including our prophet.
Patriotism
We are not against national interest. We have to fight for the right of our nation as long as we are not offending others. If required we are commanded to fight and sacrifice our lives. What a great teaching. Is it in taught in any other books.
So we don’t celebrate even National independence day. No need for celebration but we are ready to sacrifice to defend the nation.
Mr bogi , from last year rss nagpur headquartes started hoisting indian flag , from 1947 our madrasas hoisting clelebrating indipendence day , you sangis were with british when indians were fighting for freedom , now its time for indians to fight against sangh parivar .
To Yogi and his chela Mohsin: - Do you want the video that I'm Celebrating Ind. Pen Day and Fl-ag hosting in bathroom..........
Mr Yogi's statement is a proof for his trust in minorities, for video recording... Its better to send those Usthads who all attended the MRM meet yesterday in Bantwal constituency.
Yogi ji could you please request your headquarters in Nagpur to hoist national flag above RSS's Saffron flag,
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